Companies reporting next week

Technology firms will be in the spotlight next week, with results from three leading tech and telecom companies. But the market's main focus will be on US interest rates. The Fed meets on 30/31 January and is expected to cut rates by half a percentage point.

Telecoms group Thus reports on Tuesday. Falls in subscribers to its Demon internet business and big cash outflows have been offset by good business growth. Though confidence in the company's outlook is thin, it has continued financial support from its major shareholder, Scottish Power. Third quarter losses are expected to come in at £49m, said stockbroker Gerrard.

Scottish Power itself will report third-quarter figures on Thursday. A shutdown at one of its power plants in Texas is costing about £45m a week and it is expected to be out of service for at least four months.

Figures from chip designer Arm Holdings on Wednesday will be closely scrutinised for signs of a wavering growth in royalty revenues, because of concerns there has been a slowdown in demand for telecoms-related hardware.

On the same day, telecom group Kingston Communications is expected to report a third-quarter loss of £3m. The group, which derives its core profits from supplying the Hull residential base, depends on its Torch business telecoms service for future growth.

Away from the techs, Northern Rock is expected to start the banks' reporting season with a bang when it reports its finals on Wednesday. The City predicts Northern will turn in the best profits among the mortgage banks, with an underlying increase of 10% One area of potential concern, however, could be credit quality. Northern Rock has pioneered lending in excess of 100% of property values and analysts will be studying its bad debt provision. Overall, pre-tax profits are forecast to come in at £250m, against £216m last time.

Months of rail chaos have boosted passenger numbers at the seven airports operated by BAA. This rise is expected to help offset the drop in income caused by the abolition of duty-free shopping inside the EU. Friday's third quarter figures are forecast to come in at £245m, against £424m.